Understanding the EFQM Model

The European Foundation for Quality Management (EFQM) model is a management framework designed to help organisations manage change and improve performance. Launched in 1992, the EFQM model aims to increase the competitiveness of European companies by promoting excellence through a structured approach to self-assessment. The model provides a comprehensive analysis of various organisational elements, including leadership, strategy, people, partnerships, processes, and results, encouraging continuous improvement and sustainable success.

Applying the EFQM Model to Family Businesses

Family businesses, with their unique dynamics and challenges, can greatly benefit from the structured approach of the EFQM model. By applying this model, family businesses can systematically assess their performance across various domains, such as leadership, strategy, people, partnerships, processes, and results. This holistic evaluation helps identify strengths and weaknesses, offering a clear roadmap for enhancing performance and achieving sustainable growth.

Key Benefits of the EFQM Model for Family Businesses:

  • Objective Self-Assessment: The EFQM model provides a standardised framework for assessing performance, ensuring objectivity and consistency in evaluations.
  • Comprehensive Evaluation: It covers all aspects of the business, from leadership and strategy to customer satisfaction and societal impact, ensuring a holistic view of performance.
  • Continuous Improvement: The model emphasises the importance of continuous improvement, encouraging businesses to regularly evaluate and refine their practices.
  • Benchmarking: By comparing their performance against industry standards and best practices, family businesses can identify gaps and opportunities for improvement.

Best Practices in the EFQM Model

Leadership: Strong leadership is essential for setting a clear vision, values, and culture for the organisation. Effective leaders inspire, engage, and align the organisation toward its mission and strategic goals. Exceptional families showcase leadership by guiding the organisation towards sustainable success, fostering a culture of excellence, and setting the direction for future growth.

Strategy: Developing and implementing a clear and effective strategic plan is crucial for aligning the organisation’s objectives with its mission and vision. Exceptional families ensure that their strategy is flexible, competitive, and resource-efficient, adapting to changing market conditions and stakeholder needs.

People: Managing and developing the workforce is vital for enhancing performance and adaptability. Exceptional families invest in recruitment, training, employee engagement, and diversity initiatives, fostering a culture of continuous learning and improvement.

Partnerships and Resources: Effective management of external relationships and resources enhances competitiveness and sustainability. Exceptional families leverage strategic partnerships, manage resources efficiently, and focus on sustainability to build resilience and drive growth.

Processes, Products, and Services: Continuous improvement of processes, products, and services is essential for meeting stakeholder expectations and achieving operational excellence. Exceptional families adopt innovative approaches to process optimisation, product development, and service delivery, ensuring high-quality outputs and customer satisfaction.

Customer Results: Delivering value to customers and maintaining high levels of satisfaction and loyalty are key drivers of success. Exceptional families focus on understanding and meeting customer needs, leading to increased loyalty, market share, and revenue.

People Results: Effective management and development of the workforce contribute to higher employee satisfaction, productivity, and adaptability. Exceptional families prioritise employee engagement, development, and retention, creating a positive work environment and fostering long-term success.

Society Results: Positive impact on society, including environmental sustainability and corporate social responsibility, enhances reputation and viability. Exceptional families engage in responsible practices, contribute to the community, and focus on sustainability, building strong relationships with stakeholders and ensuring long-term success.

Key Performance Results: Monitoring and achieving key performance indicators (KPIs) aligned with strategic goals demonstrates organisational effectiveness. Exceptional families set clear performance metrics, regularly evaluate their progress, and adjust strategies to ensure continuous improvement and success.

The Unique Advantage of Family Businesses Applying the EFQM Model

While the EFQM offers a valuable benchmark for performance measurement in both public and private businesses, family businesses have unique attributes that necessitate additional consideration. These attributes include the closely-knit ownership structure, the interaction between business leadership and the family, and the emotional attachment to the business. These elements give family businesses an advantage in aligning family values and vision with the business itself. The family business becomes both the enabler and the result of these shared values and vision. With family members often comprising the senior management team, a strong alignment is possible when a family has established a clear vision and values.

The Family Council Canvas: A Tailored Tool for Family Office Strategy Creation

As mentioned before, the EFQM model offers a robust framework for organisational excellence, family businesses also need tools specifically tailored to their unique needs and dynamics. We are in the process of creating a Family Office strategising tool, The Family Council Canvas, which aims to help family offices create effective strategies.

How the Family Council Canvas Supports Family Office Strategy:

  • Focused on Family Dynamics: The Family Council Canvas addresses the unique challenges of family businesses, such as intergenerational dynamics, succession planning, and family governance.
  • Structured Approach: Similar to the EFQM model, the Family Council Canvas provides a structured framework for evaluating performance and identifying areas for improvement.
  • Customisable Questions: It includes tailored questions that help families explore their core values, strengths, and areas for development. For example, questions like, “What are the advantages of having family values?” and “How do you reinvigorate your values and keep them purposeful?” facilitate deep reflections on the family’s guiding principles.
  • Holistic Evaluation: By covering the Four Abundances, the Family Council Canvas ensures a comprehensive evaluation of the family’s financial, relational, temporal, and purposeful dimensions.

Conclusion

Exceptional families create successful strategies by leveraging comprehensive frameworks like the EFQM model and tailored tools like the Family Council Canvas. By objectively evaluating their performance and addressing both organisational and family-specific needs, these families can achieve a harmonious and prosperous legacy. Through thoughtful reflection and proactive planning, they can ensure sustainable growth and long-term success.